ASIA E UNIVERSITY EXECUTIVE BACHELORS IN MANAGEMENT BUSINESS PLAN

Business plan presentation

CHEAH YUEAN BING

INTRODUCTION
Midtown KL city is the location selected for the MY 1 RESTAURANT concept. The outlook for the future of KL's Midtown district,which is near Puchong Area and is exceptionally positive and the most progressive development area in the city. Developers are infusing over RM50 billion in Commercial, Residential, and Retail development. MY 1 RESTAURANT Restaurant & Lounge is unique to Midtown KL. The restaurant features 2 venues in one , A Tapas Lounge with Internet Connectivity and Full Service Dining. MY 1 RESTAURANT is a complimentary mingling of international cuisine on a single menu. MY 1 RESTAURANT's varied HALAL international menu will feature Thai, Chinese, other regional flavors. The menu flows together to create complementary elements. and

The kitchen staff will have the best in culinary education and work experience and vast experience of health food preparation ans some are visiting lecturing in local colleges in food industries.

START UP FUNDING
TOTAL FUNDING REQUIRED
TOTAL ASSET TOTAL LIABILITIES

RM690,119
RM312,791 RM300,000

TOTAL PLANNED INVESTMENT

START-UP EXPENSES TOTAL CAPITAL TOTAL CAPITAL & LIABILITIES TOTAL FUNDING

RM440,000
(RM427,209) RM12,791 RM312,791 RM740,000

MENU
The list below offers a small selection of our opening menu offerings: MY 1 RESTAURANT Tapas Shrimp Baskets w/ sweet & sour peanut coulis Minced curry beef/chicken w/ onions in roti wrap (or spring roll) Mixed Seafood Ceviche w/ couscous siding Bamboo Chicken Satay w/ kaffir lime and Sesame marmalade MY 1 RESTAURANT Appetizers Bread basket served with Olive oil, Black Pepper, and Goat Cheese dip Blue Crab Fritters with Mango-Tamarind sauce Crab Cake medallions w/ Shrimp & Lobster MY 1 RESTAURANT's Salads Mixed Greens with Spanish sherry vinaigrette Asian Pear and Endive Salad with Blue Cheese & Walnuts Entrees MY 1 RESTAURANTs a Scallops w/ a Spanish sherry reduction Thai Red Chili rubbed shrimp Voodoo Prince Curry Chicken and Bock Chow w/sticky rice in Banana Leaf Herb Roasted Chicken with MY 1 RESTAURANT' Coo-Chee (House) spices Desserts Chocolate Chunk Bread Pudding w/ Bourbon Cherry sauce MY 1 RESTAURANT Chocolate Explosion Milk, Dark and White chocolate MY 1 RESTAURANT Fruit Plate

Market Analysis
Portion Selection: MY 1 RESTAURANT's Tapas concept is built to offer different-sized portions. Our customers want the option to choose what satisfies their appetite. Menu Variety: Our research results do not identify any single ethnic style of restaurant as desired, but rather suggest that incorporating strong multi-ethnic influences in the menu selection will be popular. Again, variety is the underlying element for this concept. The Dining Experience: Customer satisfaction with food and service has been and continues to be of utmost importance, but our findings indicate that the dcor, lighting and other options to improve the dining experience are also factors in customer decisions.MY 1 RESTAURANT takes all these factors in consideration for the design of this cosmopolitan restaurant. Reasonable Prices: Customers are demanding value for their dining ringgit. MY 1 RESTAURANT's menu is priced at a mid-tier level. In addition we have an extended Tapas and Appetizer selection priced between RM3.50 - RM9.50, allowing budget dining in a full-service restaurant.

Market Segmentation
MY 1 RESTAURANT's Restaurant & Lounge intends to cater to a wide customer base. We want everyone to feel welcome and entertained. We have defined the following groups as targeted segments that contribute to our growth projections: The Business Person Downtown KL, especially Puchong Couples The Destination Customer High-End Singles Tourists

COMPETITIVE EDGE
MY 1 RESTAURANT's competitive edges are:
The owners' thorough understandings of opening and running a restaurant An extraordinary contemporary restaurant design Halal International menu with featured menu changes every 4 months Unique, 2-Tiered spatial layout Chef Co-op program to allow new entrants, trainee and featured chef Chef/Management Stock Incentive Program. Inner and Outer City Marketing campaign (i.e. "Come to Town" promotions) Employee Training, Incentive and Retention program

COMPETITOR
1. The Old Town (Direct Competitor) 2. StarBucks (Direct Competitor) 3. Paparich (Indirect Competitor)

Marketing And Sales

Marketing initiatives will concentrate on the following: 1. Building and Signage 2. Customer Service 3. Advertising and Promotion

Financial Plan
Financial Pro Forma

In addition to the RM110,000 of owner investment and RM130,000 in grant monies,MY 1 RESTAURANT is seeking RM300,000 in long-term loans and RM200,000 in investment for renovations, furniture, kitchen equipment,Halal license, food & restaurant supplies, legal fees, working capital, marketing and personnel. The Financial Plan includes:
Important Assumptions Risk Analysis & Mitigation Plan Sales Forecast (5.3.1, above) Break Even Analysis Profit and Loss Statement Cash Flow Statement Balance Sheet

Financial Plan
Investment Opportunity
Total Investor Funding Opportunity: RM200,000 Minimum Investment Amount RM15,000

Investment Term (Investor Selection)

3-5 Years

Total Equity Offering (1% per RM15,000 Investment)

20% Max

Starting Year 2

Silver: Projected Annual IRR on Investment of RM15,000 - RM49,000

10%

Gold: Projected Annual IRR on Investment of RM50,000 - RM99,000

11%

Platinum: Projected Annual IRR on Investment of RM100,000 or more

12% + Residuals

Investor Payback Program Each Investor will receive equity shares as a part owner, with a non-managerial interest in the Restaurant. Based on financial estimates, the maximum annual IRR is 12%. Over and above the interest and principal repayment, Investors contributing RM100,000 or more will receive residuals for the life of the business as a bonus incentive

Financial Plan
Pricing & Cost Control

Competitive Pricing Model. Revenue calculations are based upon competitive price comparisons and established menu values in the current marketplace.
Cost Control. Cost of goods sold have been calculated as a percentage of sales and will be monitored on a daily basis in order to keep Cost of Food within the range of 31 - 33%, and Cost of Drink & Juices below 9%. With a focus on Cost Control, we anticipate 6 months to fine tune the restaurant operations and manage our costs within the defined tolerance range. Inventory turnover and Accounts Payable. Accounts receivable turnover is calculated to be 0 days, as payment is rendered with service. Inventory is turned on a 7 day cycle as inventory is used daily within all categories, and accounts payable are projected to be 30 days.

Expansion, Payback & Exit Strategy

Expansion as a Business Goal

We have set multiple financial goals to grow the success of the MY 1 RESTAURANT concept, and compound the profit return for MY 1 RESTAURANT Investors.
Expansion (Option 1): Our overall goal to maintainMY 1 RESTAURANT as a unique and eclectic concept. Based on projections, the business has captured market share by the end of the first year. In addition Year 2 brings an increased sales and profit margin to sustain the addition of a full-time General Manager. By second quarter of Year 2, the owners will look to launch a second restaurant concept. Expansion (Option 2): Throughout our business plan we have stayed focus that MY 1 RESTAURANT would be successful as a larger venue, with greater sales capacity and revenue potential.

Expansion, Payback & Exit Strategy

Private Sale: We are in the business of making money. At the close of Year 3, we see MY 1 RESTAURANT as meeting 80.4% of its optimum sales potential with the current seating and space allocation. At this stage the business debt is reduced, profit margins are increasing, and MY 1 RESTAURANT has established market share. We will look at the private sale of the majority interest via A) Leveraged Buyout, or B) A larger Restaurant consortium. In both cases, our interest is in delivering healthy profits to our Investors and Financial backers. Sales and profit margins will be based on the restaurant valuation in Year 3. Financial Solvency: The financial projections indicate that exit will be achievable over 3 years for the operating capital line of credit. Under a realistic scenario the Company should have over RM70,000 in cash in the bank after income taxes the second year. The entire financial debt would be retired by Year 7.

Expansion, Payback & Exit Strategy

We at MY 1 RESTAURANT are committed to our concept and its viability. We step into this venture with confidence and the success of our respective prior business efforts. No one attempts a business anticipating failure, however sometimes ventures do not fulfill their promise. In the event that our venture cannot achieve profitability and retire the encumbrances, we will first attempt to sell the operation and use the proceeds to clear all outstanding balances. If we are unable to sell the operation for sufficient proceeds we will forced to default whereby the SBA loan will be in senior standing. Any further outstanding balances will be borne by the investors on a weighted percentage basis of the total amounts due.

Prepared by CHEAH YUEAN BING